President Donald Trump on Monday delayed the 25% tariff he was set to impose on imports from Canada and Mexico this week, providing a 30-day reprieve for American retailers and manufacturers.
But the uncertainty generated by those levies, the 10% tariff he slapped on Chinese imports and the prospect of additional tariffs are already affecting the U.S. economy as companies pause hiring and investment.
“The lingering threat of substantial new tariffs and possible retaliation from Canada and Mexico on U.S. exports will cause many businesses small and large to hold back more on hiring and investing than they would have otherwise due to the elevated uncertainty,” said Scott Anderson, chief U.S. economist of BMO Capital Markets.
Is business confidence high now?
Sixty-seven percent of American executives said they were more stressed heading into 2025 than they were a year earlier, according to an online survey of 1,000 executives at companies with at least 10 employees. The poll was conducted Nov. 25 to Dec. 9 by Wakefield Research for Sentry, a business insurance company.
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And 47% of the company leaders said economic uncertainty was their biggest worry.
Forecasters say the tariffs will take a toll on the economy even if they’re not passed along to consumers through higher prices.
‘One thing after another’
For Stephenson’s of Elkhart, a 92-year-old family-owned clothing store in Elkhart, Indiana, the trade war is the latest…
